As the EU moves to mandate the use of recycled materials at 25%, the circular economy in the automotive and resources sectors is gaining momentum worldwide. Japanese companies will be required to shift to new business models.
Global momentum is building around resource circularity. The European Union (EU) is introducing a series of regulations centered on mandatory use of recycled materials, while China is also moving quickly to secure leadership in new markets. These developments are intensifying international competition for resources and requiring Japanese companies to respond in ways that go beyond conventional thinking.
As part of a series on the automotive and resource-circularity era, this article explains the EU’s aims in mandating recycled-material use and the impact on industry. The circular economy is being positioned as a pillar of resource security and industrial strategy, extending beyond environmental measures.
Japanese companies are expected to shift to new business models based on the circular economy, and it is considered important to develop long-term strategies that take domestic and international developments into account.